The SEC has paused its civil fraud case against Chinese crypto entrepreneur Justin Sun, who invested $75 million in a Trump-backed digital token. Sun, previously charged with securities fraud and market manipulation, now finds himself in a favorable position as regulators take a step back.
Sun is a major investor in World Liberty Financial, a crypto project linked to the Trump family, which could see the former president and his relatives earn tens of millions. Trump himself is listed as the project’s “chief crypto advocate,” while his son Barron is dubbed the “DeFi visionary.”
Critics warn that Trump’s embrace of crypto, coupled with relaxed financial oversight, opens the door to corruption. Former White House communications director Anthony Scaramucci highlighted concerns, noting that anyone can now send funds to the president with just a few clicks.
This development follows a broader trend of regulatory rollbacks under Trump’s administration. The SEC also dropped its case against Coinbase, signaling a shift in its approach to the crypto industry. Meanwhile, Trump has halted bribery investigations, fired watchdogs from key agencies, and granted controversial pardons—moves that have alarmed ethics experts.
With Sun’s case on hold for at least 60 days, industry insiders are watching closely to see whether a settlement will confirm suspicions of political influence in crypto regulation.
